Certified Technical Analyst

TABLE OF CONTENT

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​1. Market Basics

1.1 Stock Market Terminology

1.2 Price Movements

1.3 Share Price Chart        

2. Trendlines

2.1 Meaning of Trend Lines

3. Dow Theory

3.1 First Tenet

3.2 Second Tenet

3.3 Third Tenet

3.4 Fourth Tenet

3.5 Fifth Tenet           

3.6 Sixth Tenet

4. Volume

4.1 Importance of Volume

4.2 Volume and Chart Patterns

4.3 Price Trends and Volume

5. Price Charts

5.1 Types of Charts

5.2 Other Price Charts           

5.3 Support

5.4 Resistance 

6. Candlestick Chart Patterns

6.1 History

6.2 Formation

6.3 Basic Chart Patterns

7. The Elliott Wave Principle

7.1 Wave Degrees

7.2 Basic Sequence

7.3 Fractal Nature

8. Technical Indicators

8.1 Simple Moving Average (SMA) Model

8.2 The Exponential Moving Average (EMA) Model

8.3 Moving Average Convergence Divergence (MACD)

8.4 Oscillators

8.5 Bollinger bands

8.6 Average Directional Index (ADX)

8.7 Parabolic SAR

9. Fibonacci Study

9.1 Overview

9.2 Arcs

9.3 Fans

9.4 Retracements

9.5 Time Zones

10. Trading Psychology

10.1 Over Confidence

10.2 Anchoring

10.3 Confirmation

10.4 Loss Aversion

11. Charting Softwares

11.1 Common Features

12. Trading Rules with Technical Analysis

12.1 Map the Trends

12.2 Spot the Trend and Go With It

12.3 Find the Low and High of It

12.5 Draw the Line

12.6 Follow that Average

12.7 Learn the Turns

12.8 Know the Warning Signs

12.9 Trend or Not a Trend

12.10 Know the Confirming Signs    

 

COURSE OUTLINE

 

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​1. Market Basics

• Discusses the important terminologies used in the stock market  such as meaning of bull, bear, closing price, circuit breaker, intraday trading, stop-loss etc.
• Illustrates the various reasons that might cause movement in price such as falling share price, changing market conditions, etc.
• Explains the functioning of share price chart and illustrates various situations such as gaps, dead cat bounce etc.

2. Trendlines

• Explains the basics of trendlines such as the procedure of drawing a trendline, meaning of intersecting trendlines, drawing trendlines on long-term charts etc.
• Describes the different types of trendlines with examples – Upward and Downward trendlines.

3. Dow Theory

• Describes the various types of trends in the first tenet of Dow Theory such as up-trends, down-trends and corrections.
• Illustrates the three phases in the second tenet of Dow Theory such as accumulation phase, public participation phase and excess phase.
• Describes the functioning of the price of an asset in the third tenet of Dow Theory and how the markets discounts all news
• Explains the concepts of stock market averages used in the fourth tenet of Dow Theory
• Explains the role of  volume in identification of price trend in the fifth tenet of Dow Theory
• The sixth and the final tenet of Dow Theory states that the trends exist until definitive signals prove that they have ended.

4. Volume

• Explains the meaning and importance of volume in technical analysis in terms of trend confirmation and chart patterns
• Explains the relation of volume and chart patterns and the implication when volume precedes price and the concept of breakouts
• Explains the relation between price trends and volume, analysis of trend volume and the meaning of volume spikes

5. Price Charts

• Explains the purpose of price charts and the usage of time frames by traders as per their trading style
• Describes the various types of charts such as line chart, bar chart and candlestick charts.
• Describes the other price charts being used in the process of analysis such as Kagi charts, Heiken Ashi candles and Renko charts.
• Explains the concept of “support”, its treatment and implications.
• Explains the concept of resistance, its functioning and the charts showing support and trend in a range market and trending market

6. Candlestick Chart Patterns

• Explains the history and evolution of candlestick charts
• Explains the concepts of candlestick formation such as long versus short bodies, Morubozu, long versus short shadows, spinning tops, doji, hammer, inverted hammer, hanging man.
• Explains the basic chart patterns to identify support and resistance such as double tops and bottoms, head and shoulder patterns, bullish and bearish engulfing, morning, evening and shooting stars, falling and rising wedge, flags and pennants etc.

7. The Elliott Wave Principle

• Explains the discovery of Elliot Wave principle and the various price patterns emerging in the overall path of market development.
• Explains the notations and implications of different degrees of wave
• Explains the basic sequence of the impulse and corrective wave and their respective movements
• Explains the fractal nature of Elliot wave, the three rules applied to 5-wave impulse sequence and the important guidelines pertaining to Elliot wave

8. Technical Indicators

• Explains the importance and usage of technical indicators
• Describes the categories of technical indicators – leading and Lagging indicators
• Illustrates the Simple Moving Average (SMA) Model with example and charts
• Illustrate the Exponential Moving Average (EMA) Model, its numerical and graphical representation
• Comparative analysis between SMA and EMA
• Explains the concept of Moving Average Convergence Divergence (MACD), its graphical representation and various types of MACD lines
• Explain the leading technical indicator – ‘Oscillators’, relative strength index and stochastic oscillators
• Explains the practice of Bollinger bands and ways in which it is used
• Explains the Average Directional Index (ADX)
• Explains the concept of Parabolic SAR

9. Fibonacci Study

• Discusses the evolution of Fabonacci and the associated studies
• Explains the meaning and interpretation of Fabonacci Arcs
• Explains the meaning and interpretation of Fabonacci Fan Lines
• Explains the concept of Fabonacci Retracements
• Explains the interpretation of Fibonacci Time Zones

10. Trading Psychology

• Explains the various psychological biases that may affects while trading such as over confidence, anchoring, confirmation, loss aversion

11. Charting Softwares

• Explains the common features of charting softwares such as charting, back testing, optimization, scanner, alters, data feeds, custom indicators, platforms etc

12. Trading Rules with Technical Analysis

• Explains the important rules that should be used in technical analysis such as – Map the trends, Spot the trend, find the low and high of it, draw the line, follow that average, learn the turns, know the warning signs, trend or not a trend and know the confirming signs